Changes to W-2 Form

The inclusion cost of employer-sponsored health coverage on the W-2 form is one of the provisions in the Patient Protection and Affordable Health Care Act (PPACA) that will become effective within the next calendar year.

Beginning January 1, 2011, State of Alaska employee W-2 forms will include the cost of employer-provided health coverage. This provision applies to the State’s AlaskaCare employee plan. Currently W-2 forms do not require this information, but the State is reporting the amount of the employer provided health care cost on the payroll stub.

Since retirees do not receive a W-2 form, this provision is not applicable to them.

Summary of Provisions

Effective January 1, 2011

  • Employers must report the cost of employer provided coverage (employee plus employer portion) on their employees' W-2 forms.

Legal Citation: PPACA § 9002 amending IRC § 6051(a)